Saudi Arabia Eyes $10 Billion Investment Push in Pakistan Amid Strengthening Economic Ties

Finance Minister Muhammad Aurangzeb has reaffirmed that Saudi Arabia’s commitment to invest $10 billion in Pakistan remains firmly intact, marking a continued shift in bilateral relations from crisis-driven support to long-term, investment-oriented economic cooperation. The development aligns with the momentum created by the recent Strategic Defense Pact signed in September and the Saudi–Pakistan Economic Cooperation Framework finalized last month.

For decades, Saudi Arabia has assisted Pakistan through central bank deposits and deferred oil payment facilities. However, the focus is now moving toward commercially viable, equity-based investments with strong returns. Aurangzeb highlighted that Pakistan’s stabilizing economy is strengthening investor confidence. Inflation, which soared to almost 38 percent in May 2023, has significantly dropped, foreign exchange reserves have improved, and the rupee has remained stable. These gains have prompted Fitch and Moody’s to upgrade Pakistan’s economic outlook, citing improved liquidity and sustained policy discipline.

Pakistan is currently in the middle of a $7 billion IMF program, with the second review successfully completed. A board decision expected in December is likely to further support sentiment and reduce macroeconomic risks.

Aurangzeb stressed that Pakistan’s economic future must be driven by private-sector investment rather than aid: “It’s not aid; it has to be trade and investment. That is going to bring sustainability at both ends.” Priority sectors for Saudi capital include mining and minerals, IT, agriculture, food processing, manufacturing, and tourism. Many of these investments align with Saudi plans for the 2034 FIFA World Cup, with companies such as Forward Sports in Sialkot serving as successful examples of high-precision manufacturing partnerships.

One of the most significant potential developments is the Reko Diq copper-and-gold project in Balochistan. Saudi Arabia’s Manara Minerals has expressed interest in acquiring a 15 percent stake. Aurangzeb said the project is close to its financial close, with an IFC-led group arranging $3.5 billion in project financing. Final approvals — including those from the US Export-Import Bank — are awaited. Reko Diq’s first year of production could bring in up to $2.8 billion in exports, representing nearly 10 percent of Pakistan’s annual export base.

Aurangzeb reiterated that Pakistan aims to transform its improving economic indicators and favorable geopolitical environment into stable, long-term investment flows. As one of Pakistan’s most strategic economic partners, Saudi Arabia is expected to play a central role in this new era of private-sector-led growth.